E-mini S&P stagnates after bear breakout

Brooks Price Action - 10-23-2012 Tuesday

pending chart 1582

Trading range day. Bear breakout on daily chart, but might be island bottom if gap up tomorrow

  • Tuesday, October 23, 2012
  • Bar 1 - Yesterday had strong bull close after dip below april high on cash, but big gap down today. Probably bear trend day. Doji so wait. Don't buyers below since might be big bear trend day. Ok swing sell or short with stop above low of yesterday = top of gap
  • Bar 2 - Big bear bar, always in short, ok swing sell or short but wide stop so ok to wait. Might get double top 1
  • Bar 3 - Fail, failure breakout but tail. Don�t buy or long
  • Bar 8 - Bear outside bar surrounded by inside bars but far from moving average. Ok swing sell or short but might go more sideways
  • Bar 10 - 2 breakout bars but tails so might be bear leg in trading range than in bear trend. Swing stop above 8 or 9
  • Bar 11 - Doji breakout pullback sell or short so swing only or wait
  • Bar 13 - Big bear bar, below gap in sept so sell vacuum, so might get pause. No consecutive big bear bars so selloff looks more like bear leg in trading range than in bear
  • Bar 15 - Two bar revresal, two legged pullback in a bull move, but bear so better to wait for second entry buy
  • Bar 19 - Breakout but doji. Two legged pullback in a bear move but doji ant 6 bar bull microchannel after sell climax. Better to wait for second entry buy or second entry sell since trading range likely
  • Bar 23 - Two bar revresal, two legged pullback in a bear move, but trendline breakout and weak selloff so major trend reversal likely. Scalp sell or short or wait to buy or long major trend reversal
  • Bar 27 - Higher low major trend reversal but 3 bear bars. Ok swing, ok to wait for breakout or double bottom bull flag
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.com]
About the Author
Al Brooks

Al Brooks, M.D., is author of the Brooks Trading Course (27 hours of videos at BrooksTradingCourse.com), several books on Price action (Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader, Wiley, 2009, and the 500,000 word, three-book series, Trading Price Action, Wiley, 2012), and numerous articles in Futures Magazine. He also provides live intraday E-mini price action analysis and free end-of-day analysis on www.brookspriceaction.com.

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